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Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate.
Answer: the conditions when forward exchange rate will be an unbiased predictor of the future spot rate is
a) If the risk premium is insignificant and
b) If foreign exchange markets are informationally efficient.
Forward Contracts: The origin of forward contracts is lost in history. Some authors suggest that, it was India where these contracts took birth, while some others suggest that
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Treasury Bills in International Markets A brief discussion on treasury bills in international markets is given below: Primary Market T-bills are important money market
Special bond structures are the municipal securities bearing special security structures. They are of two types - insured bonds and pre-refunded bonds.
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